JSE-listed OneLogix Group recorded a satisfactory set of results for the six months ended November 30, 2021, despite challenges outside of management’s control, including a freak hail storm and the civil unrest in July 2021, CEO Ian Lourens says.
He explains that OneLogix VDS and OneLogix Trucklogix, which form part of the largest segment contributor to the group, continue to be hamstrung by depressed storage volumes owing to global supply chain disruptions impacting on the supply and delivery of passenger and commercial vehicles.
Moreover, the on-boarding of additional vehicle storage facilities as part of the third phase of the Umlaas road logistics hub in January 2021 contributed an additional R32-million in lease-related costs in the period compared with the prior period.
Lourens says the recent restructuring and productivity interventions at OneLogix United Bulk (UB) have been successful and stimulated further innovative initiatives throughout the group.
“Each business within the remaining 12 businesses that make up the group remains well positioned and inherently relevant with a strong business strategy, sklilful, resilient and innovative management teams, together with a strong customer base that will ensure their sustainability,” he notes.
FINANCIAL REVIEW
Revenue increased by 21% to R1.49-billion, with revenue increases across all the group’s operations and a return to similar pre-pandemic levels.
Cross-border transport volumes recovered strongly in the period, increasing by 29% from the prior period, to R299.8-million.
An increase in the average fuel price for the period, of 24%, resulted in an increased fuel-spend recovery in the top line of about R70-million.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 14% to R213.7-million, which the company says is encouraging, considering the significant cost control measures and one-off staff cost savings implemented during the prior period.
As a result, Ebitda margins remained resilient at 15.1% compared with 15.3% in the prior period, it says.
Trading profit was up 17% to R98.8-million, notwithstanding an increased depreciation and amortisation charge of 12% mainly owing to the Umlaas Road Phase 3 coming into operation at the beginning of the second half of the prior year.
Consequently, trading margins decreased slightly from 7.3% to 7% on the basis of the exclusion of the R70-million additional fuel charge from both revenue and operating costs.
Headline earnings per share (HEPS) of 1.1c were 89% lower and core HEPS and diluted core HEPS, the earnings metric used by management to measure operational performance, decreased by 82% to 2.1c, as the amortisation charge of intangible assets recognised on business combinations was less than the last period.
The group invested a total of R96.98-million in owned operational infrastructure during the period.
Given the prevailing uncertain economic circumstances, the board decided that no dividend would be declared for the period.